Adjudication Order Against Rajamani in The Matter of Gee Gee Granites Ltd.
Adjudication Order Against Rajamani in The Matter of Gee Gee Granites Ltd.
Adjudication Order Against Rajamani in The Matter of Gee Gee Granites Ltd.
13. At this instant, it is important to quote the observations of the Honble Supreme
Court of India in the matter of SEBI v. Shri Ram Mutual Fund [2006] 68 SCL
216(SC), inter alia, held: once the violation of statutory regulations is established,
imposition of penalty becomes sine qua non of violation and the intention of parties
committing such violation becomes totally irrelevant. Once the contravention is
established then the penalty is to follow.
14. While imposing monetary penalty it is important to consider the factors stipulated in
section 15J of SEBI Act, which reads as under:
15J - Factors to be taken into account by the adjudicating officer:
While adjudging quantum of penalty under section 15-I, the adjudicating officer shall
have due regard to the following factors, namely:-
(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable,
made as a result of the default;
b) the amount of loss caused to an investor or group of investors as a result of the
default;
(c) the repetitive nature of the default.
15. I observe that, from the material available on record, any quantifiable gain or
unfair advantage accrued to the Noticee or the extent of loss suffered by the
investors as a result of the default cannot be computed. It is observed that the
violation as regards Regulation 30(2) read with Regulation 30(3) of the Takeover
Regulations, 2011 by Noticee is not repetitive in nature.
ORDER
21. In view of the above, after considering all the facts and circumstances of the case and
exercising the powers conferred upon me under section 15-I (2) of the SEBI Act read
with Rule 5 of the said Rules, I hereby impose monetary penalty of ` 1,00,000/-
(Rupees One Lakh Only ) on the Noticee viz. Rajamani under Section 15 A (b) of the
Brought to you by http://StockViz.biz
Page6of6
SEBI Act. In my view, the penalty imposed is commensurate with the default
committed by the Noticee.
22. The above penalty amounts shall be paid by the Noticee through a duly crossed
demand draft drawn in favour of SEBI Penalties Remittable to Government of
India and payable at Mumbai within 45 days of receipt of this order. The said
demand draft shall be forwarded to the Division Chief, Corporate Finance
Department - DCR, Securities and Exchange Board of India, Plot No. C4-A, G
Block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051.
23. In terms of the Rule 6 of the said Rules, copy of this order is sent to the Noticee and
also to Securities and Exchange Board of India.
Date: September 22, 2014 D. SURA REDDY
Place: Mumbai ADJUDICATING OFFICER
Brought to you by http://StockViz.biz